Friday, January 05, 2007

Retirement

I read an article recently that mentioned a high percentage of my age group do not participate in an employer sponsored plan. Why??? I ask why???? This is one of the easiest things I have done. I just like to log in and look at the balance. Makes me smile. I am contributing the minimum so I can get the employer match. Once my all credit card debt is gone I will increase my contribution to 15%.

Come on slackers make this your new year's resolution. Sign up for your company's 401K, 403B, ABC, 123 whatever it is. Like Nike says, Just do it.

I was one of those non-participants, until recently. When you're 24ish and have a 24ish salary, it's hard to part with money for the sake of 30 yrs into the future when you're barely making ends meet NOW. That's the common attitude I had as do many others. But then I have friends who are making big bucks already and they are like "oh I'll worry about that later" which is really bad.

congrats.. most folks your age don't think about it.. I looked at that as part of my compensation package :) whenever I switched jobs.. and that's back when I was like 21.. but anywhoo LOL

LOL @ Kiesha's comment.. because I know folks that are like that.. good thing is.. even if you contribute 3% to get your employers match.. YOU WON'T SEE A DIFFERENCE INYOUR CHECK.. it's pretax money and it won't hurt you!

Always makes sense to get the match if it's available. You can always cash out the account when you leave your current job (for a 10% penalty) or take a loan against at 401k if you really want to get at the money. Not that I reccommend those things. At my first job in the UK we had a defined benefit program which I didn't participate in - first I wanted to pay down my debt. But with US style defined contribution programs and matches it's throwing money away not to participate.